Doggett: An educated workforce still key to San Antonio's future

By Lloyd Doggett :
September 25, 2012

In order to sustain economic growth in San Antonio, we must continue preparing students for the jobs that are the future of both our local and national economy. As college costs rise, reasonable financial assistance becomes even more critical to a student's ability to pursue higher education.

Too many Texans encounter financial barriers, and too many others leave college with a mountain of debt that leaves them unable to pursue their professional objectives. With increased global competition, we need to strengthen our commitment — from pre-K to postgrad — to ensure we have the world's most able workforce and that students can strive to achieve their full God-given abilities.

This is why I authored the “More Education” tax credit to encourage those seeking education beyond high school. Also known as the American Opportunity Tax Credit (AOTC), this provision allows students or their families to reduce their federal tax payments by up to $10,000 over four years to reimburse for tuition, textbooks, and other higher education expenses.

This $2,500 annual credit can cover most or all of the expenses at the Alamo Colleges and assist greatly in paying for UTSA, Texas A&M and other more costly programs.

Even those attending school and working part time, who do not have as much as a $2,500 tax liability, can still claim up to $1,000 in a refundable tax credit for eligible educational expenses, which is similar to the refundable Earned Income Tax Credit. The credit does not apply to expenses you paid with monies received through a scholarship or other grant, but the credit can be used to cover any of your additional out-of-pocket costs expenses.

Over recent years, millions of families have already benefitted from the AOTC, but others may have been unaware of their ability to use this credit in defraying education costs that they have paid. If you missed this opportunity, you can still amend your tax return for 2010 and/or 2011 to claim it. An amended tax return must be on paper, not filed electronically. Normal IRS processing times range from eight to 12 weeks.

Though much work remains to be done to increase the accessibility and affordability of higher education in our community, we have made strides in the right direction over the last three years. Congress also simplified the application process for student financial assistance and made one of the largest investments in college aid in our history.

We should continue investing in Work/Study Grants, Pell Grants, and the Direct Student Loan program — other important forms of student financial assistance that I have worked to expand as a way of removing financial roadblocks to getting a college degree.

Unless the “More Education” initiative is extended, as proposed by the president and in pending legislation that I have filed in Congress, 11 million students and their families will be denied this assistance during 2013.

Let's retain the higher education tax credit and assure more of our neighbors the opportunity to seek good paying jobs to support their families and to contribute to making San Antonio even stronger.

U.S. Rep. Lloyd Doggett's congressional district, under proposed redistricting, will include areas in San Antonio's northeast and south.